FBLA Financial Literacy

Under which of the following circumstances would it be financially beneficial for you to borrow money to buy something now and repay it with future income?

• when you need to buy a car to get a much better paying job

• when you need a vacation

• when some clothes you like go on sale

• when you want to invest the money and feel you could make more than the interest you are paying

A key financial literacy skill is constructing a financial __________.

Successful personal finance requires following sound __________ and committing to them as a way of life.

The __________ rule suggests that 50% of income should go to fixed expenses, 30% to finances (debt/savings), and 20% to entertainment.

Identify the correct sentence structure:

• A) She enjoys reading, and she goes to the library often.

• B) She enjoys reading and she goes to the library often.

• C) She enjoys reading; and she goes to the library often.

• D) She enjoys reading, she goes to the library often.

Choose the correct word to complete the sentence: Financial literacy is an important _______ for young adults.

• A) skill

• B) skills

• C) skilled

• D) skillful

Which of the following sentences uses correct grammar?

• A) Neither the manager nor the employees was aware of the financial issues.

• B) Neither the manager nor the employees were aware of the financial issues.

• C) Neither the manager nor the employees is aware of the financial issues.

• D) Neither the manager nor the employees are aware of the financial issues.

Select the sentence that demonstrates proper use of a semicolon:

• A) Financial literacy is important; it helps in managing personal finances.

• B) Financial literacy is important, it helps in managing personal finances.

• C) Financial literacy is important: it helps in managing personal finances.

• D) Financial literacy is important it helps in managing personal finances.

What is the main idea of the following passage? 'Financial literacy involves understanding how to manage money, including budgeting, saving, investing, and planning for retirement.'

• A) Financial literacy is only about saving money.

• B) Financial literacy includes budgeting, saving, investing, and planning for retirement.

• C) Financial literacy is not important for retirement planning.

• D) Financial literacy is only about investing.

Identify the correct use of a colon in the following sentences:

• A) She had three goals: save money, invest wisely, and retire early.

• B) She had three goals; save money, invest wisely, and retire early.

• C) She had three goals, save money, invest wisely, and retire early.

• D) She had three goals save money, invest wisely, and retire early.